UK: 1. An accounting expression to describe the excess of income over expenditure of mutual companies rather than profit. 2. The amount ceded by way of reinsurance after the direct office has fixed its retention. 3. In life insurance, the difference between assets and liabilities as revealed at the annual valuation, out of which bonuses are paid to with profits policyholders. 4. Pension fund surplus. The retirement benefits of final salary scheme members may be enhanced as a result of a surplus in their fund. ICTA, s.603, obliges the trustees to eliminate any surplus above the calculated statutory surplus. The retirement benefits can be improved or the employer may be permitted a contribution holiday or given a refund subject to tax at a rate of 40 per cent.
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REINSURANCE: A form of pro rata reinsurance indemnifying the ceding insurer against loss to the extent of the surplus insurance liability ceded, on a share basis similar to quote share. Essentially, this can be viewed as a variable quote share contract wherein the reinsurer’s pro-rata share of insurance on individual risks will increase as the amount of insurance increases, given the same reinsurer’s retained line, in order that the primary insurer can limit its net exposure to one line, regardless of the amount of insurance written.
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MEDICAL, US:Dollar amount that shows an insurance company’s assets exceed its liabilities and capital.
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REINSURANCE: Reinsurance of amounts over a specified amount of insurance, premiums and losses being shared proportionately between insurer and reinsurer.
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US: The amount by which an insurer’s assets exceed its liabilities. It is the equivalent of “owners’ equity” in standard accounting terms. The ratio of an insurer’s premiums written to its surplus is one of the key measures of its solvency.
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The amount by which an insurer’s assets exceed its liabilities. Statutory surplus is an insurer’s or reinsurer’s capital as determined under statutory accounting rules. Surplus determines an insurer’s or reinsurer’s capacity to write business.
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The amount given off by way of Reinsurance after the direct Insurer has decided upon his retention. See Also: “Reinsurance, Surplus.”
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The assets of the insurer, minus the insurer’s liabilities.

for a life insurer, its actuarial surplus, being that part of the fund in excess of its liabilities to policyholders and shareholders; holders of with-profits policies expect, in accordance with the insurer’s duty of fairness, to receive a share in the surplus usually by allocation as a reversionary bonus added to the sum assured and payable with it.

in reinsurance, the amount by which the gross sum insured accepted by a ceding company exceeds the cedant’s own retention.